Start Investing in Low Risk Instruments

Investing your money does not necessarily mean bearing a high risk to lose your money. If you are a beginner investor, there are plenty low risk investment products that you can choose. While saving cash in your bank might make you feel save, hidden costs of inflation may slowly eat up your safety cash. Get to know a low risk investment instruments is a good start to be familiar with investing world.

So, what are the four low-risk instruments that are suitable for beginner investors?

As a traditional investment instrument championed by our parents’ generation, gold has been a familiar go-to investment purchase in Indonesia. Gold is an investment instrument that can withstand the rate of inflation and suitable for who want to invest for a long term over 5 years. We can buy gold digitally or physically in the form of gold bullion depending on our individual preferences.

Deposit Saving
Being a low risk instrument protected by the Deposit Insurance Corporation (LPS), deposit account gives a higher interest than savings account. This is because they cannot withdraw money before maturity. The yields, however, are not as high as the other investment instruments.

Money Market Funds
This instrument will be managed by investment managers in the form of money market instruments, such as deposits or securities with a maturity of less than one year. The yields given can be said to be decent and slightly larger than deposits.

Retail Bonds
The government through the Ministry of Finance offers debt securities (bonds) to individual investors through distribution partners in the primary market. The yields offered by these bonds depend on the initial agreement at the time of issuance, generally being issued with a range of 6-8.5% per annum with various maturities.

These four instruments could be a starting point for you start investing while avoiding high fluctuations in your savings value. As you gain experience in various portfolio, hopefully you would be more knowledgable and confident to invest in stock market, which has a higher risk appetite.

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